General Motors has announced it will stop production in five North American facilities and cut 14,700 jobs as it deals with slow sedan sales and the impact of Donald Trump prices.
More than 6,000 blue collar jobs will be hit by GM plans to give the best production in a car plant in Canada and two other in Ohio and Michigan. Two transfer plants in the United States will also be mothballed, placing the future of those plants suspicious.
The cuts will also include 15% of 54,000 GM white collar workforce, about 8,100 people, and reach 18,000 GM employees to receive voluntary redundancy.
Trump – who won over voters in many of the states affected by a GM decision by promising to rescue their jobs – told reporters who were not happy with the decision. "We do not like it," he told reporters. "This country has done a lot to General Motors. They're better back back to Ohio, and soon."
Mary Barra, chief executive of GM, was due to meet Larry Kudlow's top house economic adviser later on Monday.
"We are taking these steps now while the company and the economy are strong to continue to change market conditions," said Barra at a conference call. The share of GM share 5.5% rose on the news.
The car plants – Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly and the Oshawa Assembly – all build slowly. Trump held a rally near the Lordstown plant in July and told workers not to sell their homes because "jobs were coming back".
The issue will be addressed in discussions with the Union United Workers Union next year.
Cost pressures on GM companies and other car companies and suppliers have increased as the demand declines for traditional sedans. The company has also said that imported steel tariffs, which were set earlier this year by the Trump administration, have cost $ 1 billion.
Michelle Krebs, an active analyst at Autotrader, said Bar was "trying to get a potential crisis by making cuts now". He said that a wealth of factors triggered GM actions: a decline in the China market and potential decline in the North American market; the dramatic change by users of traditional cars for utility vehicles; and the impact of tariffs and trade issues.
GM is suitable for a dormant assembly plant in Canada. The Union Unifor Union, which represents the automated majority of Canadians, said on Sunday that GM had notified that any product had to allocate the plant to Oshawa after December 2019.
Justin Trudeau, prime minister of Canada, expressed his "deep disappointment" with the decision. He said on Twitter: "GM workers have been part of the heart and soul of Oshawa for generations – and we will do everything we can to help families affected by this news go back on their feet. Yes, I spoke to Mary Bar GM to express my deep disappointment at the closing. "
The largest American car maker employs around 2,500 union staff in Oshawa, which produces Chevrolet Impala and Cadillac XTS sedans. It also completes the final assembly of the Silverado and stronger Sierra search trucks, which have been transported from Indiana.
GM has argued internally for months how to tackle the fall in demand for a car, indicated by a person who was said on the matter, and the matter is certain of re-appear when GM is holding next year's contract discussions with the AUC.
The company has started what is expected to be a long and expensive transfer to a new transport model that includes electrical and automated vehicles, many of which will be shared rather than being own them. GM pointed out the latest belt tightening at the end of October when it offered buyers to 50,000 employees in North America.
The reduction of US car sales has seen a number of car plants falling into just one shift, including its Detroit Hamtramck Assembly and Lordstown, Ohio plant, an assembly plant.
Rivals Ford and Fiat Chrysler have broken US car production. Ford in April said he intended to give the best to build almost all cars in North America.